India-Iran-Afghanistan’s New Deal, Yet Another Attempt To Bring Back Mallya and other news

Bypassing the neighbor: India, Iran and Afghanistan have signed a pact which will allow Afghanistan to trade with global countries using a route which bypasses Pakistan. The Chabahar port in Iran will become the node for all trade between Iran and India, while a railway line from Afghanistan to the port will also give the hilly nation access to global markets. The line will be built by the two countries with India’s help. Right now, Afghanistan uses Karachi as its port, which makes it susceptible  to complications from Pakistan’s relations with other nations, including India and Iran. For India as well, it is a route to trade with Central Asia, without going through Pakistan. This map by Mint, says it all.

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Deportation Vs Extradition: Late last month, the ministry of external affairs wrote to the UK government seeking Vijay Mallya’s deportation given the arrest warrants issued against him in fraud cases. The UK government responded two weeks later, saying Mallya cannot be deported under their laws, but he can be extradited - a longer process. The Enforcement Directorate, which investigates financial crimes, is pushing the government to start this off. And while it waits, the ED is keeping busy by digging deeper into Mallya’s finances.

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Supporting Rajan: Banker Uday Kotak is vocally supporting RBI Governor Raghuram Rajan, who has been the target of rants by BJP lawmaker Subramanian Swamy, repeating what many India watchers have been saying all along:

"One of the things that has served India well is an independent RBI. We have to keep politics out and keep RBI independent."

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GMV no more: Flipkart has moved away from GMV targeting and is focussing instead on customer satisfaction, according to CEO Binny Bansal. Parameters for success at the startup have changed, he said in separate interviews to two mainstream newspapers. You can read them here and here.

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BT Cotton rollback: The government has withdrawn the cap that it had placed on royalty payments for genetically modified seeds after experts said it will deter foreign investment in India. Now, the government is seeking public comments before it finalizes any policy.

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Bankruptcy Law: The government is aiming to make the bankruptcy code law operational by the end of this fiscal - a move that is of utmost importance to banks and their defaulting borrowers, as well as startups. The parliament cleared the bill earlier this year, and it’s now time to put in place a system that will make it work.

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Cover: Shaking hands after the historic deal

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